Improved market trends buoy pricing within the region and cause multiple offers to rise in certain areas of the city
Royal LePage expects prices to rise slightly in Edmonton for the remainder of 2017
EDMONTON, July 13, 2017 /CNW/ - According to the Royal LePage House Price Survey1 and Market Survey Forecast released today, the aggregate2 price of a home in Edmonton began to rise in the second quarter of 2017, climbing 3.8 per cent year-over-year to $387,989.
When broken out by housing type, the median price of a two-storey home and bungalow rose by 5.0 per cent and 3.7 per cent year-over-year to $449,090 and $376,498, respectively. During the same period, the aggregate price of a condominium declined by 2.3 per to $234,697.
"Over the last three months, the Edmonton real estate market has made significant headway, clawing its way out of a recessionary period," said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate. "While consumer confidence has yet to fully recuperate, many positive signs can be found within the marketplace, as the economy continues to strengthen, and sales activity surges in certain neighbourhoods."
"With prices having relatively stabilized, people aren't looking over their shoulders as much anymore," continued Shearer. "Instead, they are coming into the market in order to capitalize on slightly depressed home values. Though many are still able to take their time and mull over a potential home purchase decision, these positive trends have contributed to an increase in multiple offers being seen at particular price points, creating a need for more aggressive bidding in the marketplace."
Looking ahead to the rest of 2017, Royal LePage forecasts that the aggregate price of a home in Edmonton will appreciate by 2.5 per cent year-over-year to $388,224, as the region's stabilizing economy continues to bolster confidence within the market.
"Having withstood the brunt of the downturn in commodity prices, we anticipate that the Edmonton market will continue steadily along its current positive trajectory," Shearer concluded. "As the market strengthens, we will continue to see improvements to sales activity, propping up pricing within the region."
Nationally, Canada's residential real estate market posted strong home price gains in the second quarter of 2017, with the majority of metropolitan markets across Canada displaying expansionary trends. During the quarter, the Royal LePage National House Price Composite showed that the price of a home in Canada increased 13.8 per cent year-over-year to $609,144. When broken out by housing type, the price of a two-storey home rose 14.6 per cent year-over-year to $725,391, while the price of a bungalow increased by 10.7 per cent to $511,965. Over the same period, the price of a condominium climbed 13.4 per cent to $397,826.
"Following a period of unprecedented regional disparity in activity and price appreciation, we are now seeing a return to healthy growth in the majority of Canadian housing markets," said Phil Soper, president and CEO, Royal LePage. "The white-hot markets are moderating to very warm; the depressed markets are beginning to grow again. Canadian housing is in great shape – a statement that I certainly did not make last quarter."
"The rate of national house price appreciation that we experienced in the second quarter continues to be above what we would consider a normal range, driven primarily by very strong year-over-year price growth across much of Ontario," continued Soper.
Looking ahead to the remainder of the year, Royal LePage forecasts that the national aggregate price of a home will increase by 9.5 per cent in 2017 to $617,773 when compared to year-end, 2016.
About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 53 of the nation's largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, Brookfield RPS, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of over 17,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's and children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.
For more information visit: www.royallepage.ca.
1 Powered by Brookfield RPS
2 Aggregate prices are calculated via a weighted average of the median values of homes for reported property types in the regions surveyed
SOURCE Royal LePage Real Estate Services
For further information: Eddie Tabakman, Kaiser Lachance Communications, 604-306-0875, firstname.lastname@example.org